After being mostly absent in 2017, volatility has made a comeback. The S&P 500 Index closed down for the first three months of 2018—the first time it’s done so in 10 quarters.
After a strong rally in U.S. equity and bond markets on Friday, the upward trajectory resumed on Monday. The S&P 500 gained 1.18% and the Dow added an impressive 400 points, ending the day 1.58% higher.
Fed failed to tighten rates in September but made a clear sign that tightening will likely occur in December. This announcement takes pressure off the market.